Energy efficiency is vital to improving energy access globally, especially in emerging economies where there is increasing energy demand. Despite widespread progress, 674 million people remain without access to electricity, and energy efficiency on both the supply and demand sides has a role to play in increasing the available bandwidth in existing generation, transmission and distribution networks.
Energy efficiency can enable a higher disposable income by lowering energy bills and other costs to benefit individuals, households and businesses. Less energy consumed leads to lower energy bills, therefore, customers spend less of their disposable income on energy. In many countries, citizens have avoided hundreds of dollars on their bills due to energy efficiency improvements over the past few decades, with savings typically higher in countries with long established energy efficiency policies and higher energy prices.
Energy efficiency improvements reduce the amount of energy use required to provide a service. Energy savings are at the heart of the multiple benefits of energy efficiency and link to many other economic, social and environmental benefits.